About this report
This market report reviews the UK pest control industry. It quantifies the pest control market size and historical growth rates while probing key factors behind these figures and exploring segmentation of the market and drivers of profitability.
It also carries out an in-depth analysis of the relevant drivers of industry growth – in particular the macroeconomic environment and factors which determine volume and price for pest control work – setting out historical trends and forecasts.
The forecast for industry growth is based on this analysis of historical trends and growth drivers.
Why is it useful?
The UK pest control market has continued to grow through an uncertain economic period with changes in regulation and working practices.
We believe that, in order for those involved in the market to make the best decisions in this complex and changing environment, they need to have access to the best information and understanding of the trends and drivers. The aim of this report is to provide this.
It is intended for pest control companies themselves, as well as investors, banks, analysts, consultants and other parties with interests in the sector.
What are the sources and methodology?
This report is based on
– Publicly available data including company annual reports, websites, press releases and government statistics
– Interviews with service providers, customers and pest control market experts
– In-depth analysis of the macroeconomic environment and relevant market drivers
– Our own experience of advising companies and investors involved in the pest control and facilities management industries, both in the UK and elsewhere in Europe
Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions.
Pest control market growth and drivers
The total value of the UK pest control market is now approaching £350m, having grown despite the economic downturn
Growth has come from both increases in volume – driven by growth in the number of relevant premises, increased uptake of pest control contracts and trends towards higher service levels – and price
Key industry issues
Key value drivers include sales capability, customer retention, success in selling on higher service levels technician productivity and optimising business mix. Leading companies have launched initiatives in all of these areas.
Entry barriers to local pest control are relatively low with a history of new operators being set up by workers who have learned their trade while either working for a local authority or one of the large companies.
Market and segment entry barriers include accreditation – where a national register of pest control technicians has been created – and having the necessary scale to service national accounts
There is some evidence of both bundling of contracts with other FM services and in-sourcing of pest control
Pest control is a relatively labour intensive business with technician salaries in the region of £18-25,000.
Rentokil remains the market leader, and is the best known brand amongst consumers, with a handful of other operators having the scale to provide a national service and many smaller providers, some of whom operate as part of franchise networks.
Local councils have historically been significant providers of pest control services, although many are reviewing their provision to meet government spending reduction targets with some having already taken the decision to either contract out provision of their services or withdraw them entirely. Numbers of local authority pest control officers are significantly lower than a decade ago.
While pest control is not a particularly cyclical industry, an improving macroeconomic outlook is welcome especially to the extent that it supports increased construction activity, and hence demand for pest control services, in key customer segments.